IFSCA aml_compliance F. No. IFSCA-BDev0FSSC/2/2023 · 19 Jun 2026
Official title
Amendment to the Circular titled “Exempting certain entities/activities from the applicability of International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022
Summary
Check the official recordThe International Financial Services Centres Authority (IFSCA) has amended the Exemption Circular dated November 18, 2024, regarding the applicability of its Anti-Money Laundering, Counter-Terrorist Financing, and Know Your Customer Guidelines. The amendment mandates that all Financial Institutions, including those previously exempted, must conduct business transactions involving monetary consideration exclusively through an account maintained with a Banking Unit in the IFSC or an Special Non-Resident Rupee (SNRR) account. This requirement ensures that all funds, fees, or amounts related to business transactions are processed through specified regulated channels. The amendment is effective immediately.
What you must do
Key dates
Who is affected
CIRCULAR
F. No. IFSCA-BDev0FSSC/2/2023 19 June, 2026
To All Regulated Entities in the International Financial Services Centre
Subject: Amendment to the Circular titled “Exempting certain entities/activities from the applicability of International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022”.
Sir/Madam,
Reference may be drawn to the Circular titled “Exempting certain entities/activities from the applicability of International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022” (hereinafter referred to “Exemption Circular”), dated November 18, 2024, issued by the Authority.
In this regard, upon review, it has been decided that clause 3 of the Exemption Circular shall be modified as follows: “All Financial Institutions, including those exempted under clause 2 above, shall transact or receive the monetary consideration (i.e. funds/fees/amount etc.) emanating from the business transactions only through an account maintained with a Banking Unit in IFSC or an SNRR account.”
All other provisions of the Exemption Circular shall remain unchanged.
This Circular is issued in exercise of the powers conferred by sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with rule 9 (14) of the Prevention of Money- Laundering (Maintenance of Records) Rules, 2005, and shall come into force with immediate effect. A copy of this Circular is available on the website of the International Financial Services Centres Authority at https://ifsca.gov.in/Legal/Index/TCce8MyOmco=.
Ankit Bhansali, General Manager Division of AML & CFT, IFSCA
